jb chemical currently discharges liquid waste into calgary's mun

Project Description:

jb chemical currently discharges liquid waste into calgary's municipal sewer system. however, the calgary municipal government has informed jb that a surcharge of $4 per thousand cubic liters will soon be imposed for the discharge of this waste. this has prompted management to evaluate the desirability of treating its own liquid waste. a proposed system consists of three elements. the first is a retention basin, which would permit unusual discharges to be held and treated before entering the downstream system. the second is a continuous self-cleaning rotary filter required where solids are removed. the third is an automated neutralization process required where materials are added to control the alkalinity-acidity range. the system is designed to process 500,000 liters a day. however, management anticipates that only about 200,000 liters of liquid waste would be processed in a normal workday. the company operates 300 days per year. the initial investment in the system would be $450,000, and annual operating costs are predicted to be $150,000. the system has a predicted useful life of ten years and a salvage value of $50,000.requireda. determine the project's net present value at a discount rate of 14 percent.b. determine the project's approximate internal rate of return. (refer to appendix 12b if you use the table approach.)c. determine the project's payback period.